Recognizing Employees

9 Sincere Reasons Why Successful Companies Recognize Employees

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Almost 90% of HR professionals report that giving employee feedback is crucial for the success of a company. These regular check-ins allow the lines of communication between management and the employee to be open and available at all times. 

But more than any feedback, positive reinforcement and recognition will make all the difference in employee satisfaction. 

There are very few downsides to letting an employee know what they’re doing well. But in case you need more reason to get on it, we’ve compiled a list of the nine most beneficial reasons to recognize employees on a regular basis. 

1. Boost Self-Esteem

The most obvious reason to praise your employees is it makes them feel their value. When they can see that their work is contributing to making the whole company a success and making a difference, they feel important. 

Feeling important is a key factor in having good self-esteem. In a world where it’s easy to have low self-esteem, it simply feels nice to do something to help someone boost their own self-esteem. It’s a win-win situation all around no matter what!  

2. Increase Productivity 

Making your employees feel good is a nice thing to do. But recognizing employees also had real, tangible benefits for your business as well. 

According to Oxford Business School, employees who consider themselves happy at their workplace are 13% more productive than those who don’t. Obviously, productive and efficient workers lead to more products, better ideas, and more revenue. All those things are beneficial for your company. 

An employee who feels support from his management team has more inclination to work harder and less to hide things and procrastinate. 

3. Keeps Work Consistent

As you begin recognizing your employees on a regular basis, you’ll start to notice that they produce a higher level of work more consistently. 

Everyone enjoys being praised and noticed for the hard work they put in. If your employees know that this is a possibility because you’re regularly recognizing others, they’ll know you’re watching and produce results to receive those praises. They’ll be less likely to slack off or produce inferior work in case it will eliminate them from the recognition process. 

Praise and recognition is a great way to keep your employees on track. 

4. Gives an Example 

Sometimes, despite our best efforts, it’s not clear what exactly is expected of our employees. This type of confusion can cause big problems throughout your company. Projects will either be left undone or have to be re-done because there wasn’t a good understanding. 

When you give praise publicly for a job well done, other employees can see what worked well and try to emulate it. That recognized employee becomes an example for the rest. 

5. Specific Notes on Performance 

Telling an employee that they are doing a good job is nice and will surely make the employee happy. But giving them specific explanations about how their contributions are positively impacting the group will be even better. 

The very personalized and specific feedback will help even more in the future. The employee can build off the areas they’re doing well and also notice areas where they’re doing things differently to improve upon. Giving this type of praise doesn’t have to be a difficult process, using employee recognition software makes the process even simpler. 

6. Keeps People Around 

A major problem that many companies face is employee turnover. It takes a lot of time and resources to find, hire, and train new employees so this is something most try to avoid. 

Employee retention rates are often highly affected by employee satisfaction. If an employee is satisfied at their job, it’s not likely that they’ll be looking for something different. And, as we’ve talked about, an employee who feels valued will be much more satisfied with their job.

7. Adds Creativity to Work Space

One big benefit of offering regular recognition is that it creates a safer environment if done right. Employees will feel like they can think outside of the box more because they know they’re valued regardless of how that particular situation turns out. They understand that you see the good in their being a part of the team, so they can take a few risks. 

Creativity is an important part of any company’s success and should be encouraged as much as possible. 


8. Aligns Company and Employees

When you work in a group within a company, there usually is a collective energy that’s found throughout. The team feeds on each other and that can either be helpful or hurtful depending on the overall feel. 

If management can help the team feel validated and supported in their efforts, that energy will be positive. 

This positive energy will bind everyone together and create a more cohesive team. Everyone will feel important and integral to the success of the team, (which also means they’ll step up to challenges and do their best to help out). 

9. Makes Everyone Feel Good 

Regardless of the positive benefits your company will see for recognizing its employees, it makes everyone involved feel good. 

Working on a team can often be a difficult balance and hard to continually make positive. But noticing and vocalizing things that are going well makes that the focus instead of the hard parts. 

Obviously, we all like to hear what we’re doing well. But it’s equally as good to be the person to give that recognition as well. Give it a try and see! 

There’s No Wrong Reason to Recognize Employees

When you, as the manager or leader in your company, take the time to recognize employees it can change the course of the company. Giving recognition improves the overall wellness of the team. It improves camaraderie and helps everyone feel more valued and seen. 

There’s no right or wrong way to give recognition, it just needs to be genuine, consistent, and specific. The more you can add this to your company’s culture, the more benefits you’ll see. 

If you’re interested in learning more about management and ways to improve your business, check out our other articles today! 

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